The main stock market indices in Mexico closed the first session of September breaking a four-day losing streak, which led them to have their worst August in 24 years, mainly due to the pressure on the interest rate of the Federal Reserve (Fed ) and global economic uncertainty.
The day on Thursday was driven by opportunity purchases by investors, as specialists consider that valuations are attractive as they become cheaper after the message of Jerome Powell, president of the Fed, in Jackson Hall.
The S&P/BMV IPC, the main index of the Mexican Stock Exchange (BMV), rose 1.03% to stand at 45,383.85 points, after hitting its lowest level since March 2021 and having a 6.7% drop in August, its worst performance for that month since 1998.
“When the stock market is falling, the biggest investors are the ones who are there taking advantage of the low prices. It looks like a calmer fourth quarter, I already believe that it is also a moment to take advantage of since we see very punished prices and they could be an investment in the medium and long term”, commented Gerardo Copca, director of MetAnálisis.
The shares that gained the most during the day on Thursday were Bimbo, with 6.12%; Walmart de México y Centroamérica, with 5.86%; Axtel, with 3.08%; Nemak, with 3.05% and Herdez, with 2.93%.
On the other hand, the titles with the greatest losses were Grupo Gigante with 6.14%; Sports World, with 5.78%; Volaris, with 5.45%; Peñoles, with 4.81% and Operadora De Sites Mexicanos, with 4.19%.
“What is worrying about the local market is not that it is down and that we are heading for the worst year in the last 50 years. The worrying thing is not the situation that the local market has right now. The worrying thing is that it has not reached the historical maximum of the last 10 years”, mentioned Amín Vera, investment director of INVALA.
The specialist added that the issue of inflation has been more difficult to combat and, therefore, increases in interest rates could last until 2024. Investors are concerned that the Federal Reserve may make a monetary policy error and raise rates too much, which would send the economy into a recession
For the Wall Street stock indices, the day on Thursday ended mixed. The Dow Jones rose 0.46% and the S&P 500 increased 0.30%, while the Nasdaq fell 0.26%. The S&P 500 also snapped a four-session losing streak, thanks to a last-minute rally as investors were awaiting a key labor market report due out on Friday.
In the technology sector, chipmakers weighed in. The Philadelphia Semiconductor Index fell, led by Nvidia shares falling 7.7%, after the United States imposed an export ban on some major artificial intelligence chips to China.
Investors will be attentive to international developments, as the shares of the European Union and Asia fell due to official comments from the Fed, and inflation, which today reached a new maximum for the eurozone. Given this, French and German officials have announced that they will meet their gas reserve accumulation targets ahead of schedule despite declining Russian supplies, which is good news for the two countries ahead of winter, as that have raised concerns about gas supplies.
With information from Reuters.
